Batt O'Keeffe (Cork North West, Fianna Fail)

I welcome the record financial provision for housing in 2008. It is worth reflecting on the extent of the resources being made available — over €1.7 billion in Exchequer capital and current finance. This figure is up 16% on the 2007 Estimate and more than double the Exchequer resources made available only six years ago in 2001 at the same juncture in the last national development plan period. In a sense, this very strong upward trend in housing provision mirrors activity in the housing sector generally in that period in terms of demand and output, but also in terms of the specific and continuing need for targeted intervention by Government in the social and affordable sphere.

The increased level of funding in 2008 is in line with the housing commitments contained in Towards 2016 and demonstrates the Government's determination to fully honour these obligations as we move into year two of the current national development plan. Data for the first six months of this year indicate increased activity by local authorities and the voluntary and co-operative sector as measured by both commencements-acquisitions and by the number of units in progress. Activity under the rental accommodation scheme is also accelerating.

Following a 20% increase in 2006, the delivery of affordable housing in 2007 has continued to grow with 1,200 homes provided in the first six months of the year. My Department remains committed to meeting the ambitious targets set for affordable housing in Towards 2016 and continues to work closely with local authorities and the affordable homes partnership to achieve the required level of output.

The funding provided in 2008 will allow for the commencement of a significant number of new social housing units as well as bringing to completion a large number of units under both the local authority and voluntary housing programmes. Specifically, resources available next year will allow for over 6,600 local authority homes to be started-acquired, 2,000 starts by the voluntary and co-operative housing sector and continuing implementation of the rental accommodation scheme. In total, it is expected that programme output will amount to 9,000 homes in 2008.

We are also placing a particular emphasis on improving the quality of social housing which should be on a par with housing generally. In partnership with local authorities, we are tackling an important programme of regeneration and remedial works over the period of the national development plan. As well as continuing our support for the major Ballymun project, I particularly wish to support the programme of regeneration in Limerick being developed by the regeneration agencies established by the Government and Limerick City Council. As a demonstration of the Government's commitment to providing the range of supporting instruments required, an additional €10 million in resources has been made available in 2008 to support the initial phases of this process.

Through this year's budget, we will be able to devote a further €50 million to boost activity on affordable housing. Building on the successful market acquisition of housing initiated by the affordable homes partnership late last year, a further programme of purchases will be undertaken next year. In addition, we propose to examine the scope for introducing a new shared equity scheme to replace the current shared ownership option with the aim of offering new opportunities to eligible people to achieve their home ownership ambitions. Access to affordable housing will be further facilitated through increases in local authority loan limits from early 2008 and the development of nationwide on-line application systems by the partnership.

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